Unrecovered Costs For Utility Services Furnished To Non-Appropriated-Fund And Non-Government Activities

LCD-74-338: Published: Feb 7, 1975. Publicly Released: Feb 7, 1975.

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GAO reviewed weaknesses in the Department of Defense's (DOD) administration of user charges for utility services furnished to non-appropriated-fund and non-government activities at military installations.

GAO noted that: (1) weaknesses found in connection with charges for utilities used by non-appropriated-fund activities had not been corrected; (2) for fiscal year 1973, about $370,000 in utility charges was not collected from users at the 12 installations reviewed; (3) unrecovered utility costs could amount to much more DOD-wide; (4) DOD states the military departments lack of uniformity in following regulations might be attributable, in part, to the broad language of DOD Directive 1330.2 and promised that the language would be revised; (5) DOD, however, has not changed the language, and military department and installation-level implementation continues to be inconsistent and in need of improvement; and (6) military department policies and installation practices have operated either to exclude altogether or to inconsistently treat charges to non-appropriated-fund and non-government activities for utilities services.

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